## IMF Executive Board Completes the Eleventh Review under the Extended Credit Facility Arrangement for Guinea-Bissau

_IMF News, June 12, 2026_

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## Bibliographic details
- Published: June 12, 2026

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### Review outcome and financing
- The Executive Board completed the Eleventh Review under the Extended Credit Facility (ECF) arrangement for Guinea-Bissau on June 12, 2026.
- Immediate disbursement allowed: SDR 1.18 million (about US$1.6 million).
- The completion enables a disbursement of SDR 1.18 million (about US$1.7 million) to help meet the country’s balance-of-payments and fiscal financing needs.
- Total disbursements under the arrangement to date: SDR 38.59 million (about US$54.8 million).
- The three-year arrangement was approved on January 30, 2023, and the Executive Board granted an augmentation of access on November 29, 2023.
- The Executive Board approved the modification of quantitative performance criteria on total domestic tax revenue and domestic primary balance and completed the financing assurances review.

### Program performance and policy implementation
- All end‑March 2026 quantitative performance criteria, indicative targets, and continuous structural benchmarks and performance criteria were met.
- Program performance under the Eleventh Review was characterized as strong, reflecting firm policy implementation and adherence to the reform agenda.
- Authorities’ commitments emphasized:
  - Prudent macroeconomic policies.
  - Stronger revenue mobilization.
  - Strict expenditure prioritization.
  - Sustained reform momentum.
  - Strengthening cash and debt management.

### Macroeconomic outlook and risks
- Economic growth:
  - 2025 growth is estimated at about 5.8 percent, supported by robust agricultural production (particularly cashew exports) and solid private investment.
  - Growth is expected to moderate in 2026 amid a more challenging external environment.
- External and domestic risks highlighted:
  - Elevated global fuel prices as a result of the war in the Middle East.
  - Risks to the cashew campaign.
  - Downside risks including adverse weather, terms‑of‑trade shocks, and tighter financing conditions.
- Policy implications:
  - Continued fiscal discipline is essential.
  - Sustained efforts to strengthen cash and debt management, prioritize spending, and promote diversification (including in fisheries and extractive sectors) are key to reinforcing resilience over the medium term.
  - Authorities committed to minimizing the fiscal impact of measures to protect vulnerable groups given risks from elevated fuel prices.

### Capacity development (CD) and structural reforms
- CD support has been closely integrated into the ECF-supported program and has increased significantly since 2023.
- CD spending:
  - Spending nearly doubling and remaining above the Sub-Saharan Africa average.
  - Amounted to about US$6 million during 2023-26.
- Main CD focus areas:
  - Revenue administration and tax policy.
  - Public financial management.
  - Statistics.
  - Debt management.
- CD-assisted reforms and outcomes:
  - Replaced the sales tax with a VAT.
  - Digitalized revenue administration.
  - Strengthened tax audits.
  - Supported wage bill controls that reduced the wage bill by over 2 percent of GDP.
  - Improved SOE oversight, including by eliminating the losses of the electricity and water utility of over 1 percent of GDP.
- Structural reforms advanced by authorities:
  - Disengagement from the undercapitalized bank with a new private investor injecting fresh capital, in line with the restructuring strategy.
  - Progress in diversifying the energy supply mix.

### Key statements from IMF management
- Mr. Bo Li, Deputy Managing Director and Acting Chair, stated:
  - “Guinea-Bissau continues to show resilience despite a complex economic and political backdrop. Growth in 2025 was higher than projected, fiscal discipline has been restored, and program performance has been strong."
  - “In the context of elevated fuel prices, continued commitment to program implementation is essential to maintain macroeconomic stability, contain debt vulnerabilities, and address development needs."
  - “The authorities’ fiscal consolidation plan remains appropriate. The corrective measures to restrain current expenditure continue, along with close monitoring of the execution of priority capital expenditure."
  - “Domestic revenue mobilization efforts are bearing fruit, notably through enhanced customs procedures and a stronger focus on large taxpayers."
  - “These measures are critical to enhancing the business climate and promoting the conditions for economic diversification.”

*Press Release No. 26/204; June 12, 2026. International Monetary Fund.*

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## References

- [Guinea-Bissau and the IMF](http://www.imf.org/external/country/GNB/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2023/Extended-Credit-Facility-ECF)
- [The three-year arrangement](https://www.imf.org/en/News/Articles/2023/02/07/pr2326-guinea-bissau-imf-executive-board-approves-ecf-arrangement-for-guinea-bissau)
- [The Executive Board granted an augmentation of access](https://www.imf.org/en/News/Articles/2023/11/30/Pr23412GuineaBissauthirdreviewECF)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2026/06/12/pr-26204-guinea-bissau-imf-completes-the-11th-rev-under-ecf-arrang_